CNBC's Pisani On Mellon/Bank of New York Deal

Mellon Financial Corp and Bank of New York will be merging in a deal most on the Street feel makes good sense. BK shareholders will get 0.9434 shares of the new company while Mellon shareholders will receive 1 share. The combined company will be the world's largest asset custodian and corporate trustee.

It will also will be 11th largest financial institution in the U.S. As always there are cost reductions (about $700 million a year--an 8.5% of combined expense base according to to RBC Capital).

Bottom line: more scale in a business where scale--acquiring assets to manage--is paramount.